A ruling party appointee

The PCI chairman is talking about crushing the rights of the media in the country

Intellectual life in India has been thrown into a crisis. It is party time for social scientists, former judges and ex-bureaucrats using the wildest discretion possible to define situations and issues, unmindful of the realities and expectations.

A new India with its rich cultural legacy and high voltage economic ambition is a part of the collective conscience of the nation. As such, the guardians of opinion and ideas need to contextualise their universalism.

However, things are taking place in the opposite direction. Drift from serious discourse and ideological and political sectarianism are the two main features of contemporary intelligentsia. There are two sets of intellectuals. One, representing the Nehruvian mindset and the second representing Marxist fossils. The former uses its intellectual strength to defend the system, legitimize neo-liberal politics and the latter is still hankering after dead historical theories.

Markandey Katju is perhaps its best example. The man who is known for his scholarship, forthrightness and thoughtful insights has unfortunately failed to comprehend what he needs to do in his new role. His seminal work Mimansa Rules of Interpretation reveals his depth and like JB Kripalani, a Socialist leader, he too has dammed Indian intellectuals for ignoring invaluable treasures of our society and culture.

It was this realisation which led KM Munshi to set up Bhartiya Vidya Bhawan. However, the mission and the project failed due to intellectuals’ growing lust for power. And it is this hunger which gives the state the opportunity to co-opt people like Katju who has lost his potential to become another Munshi and is happy to play the role of Digvijay Singh instead!

Katju, like many others, seems to be a victim of a self-created ideological world and a false perception of being true guardians of society at the time when the country is passing through great transition from a conventional society to modernity.

Such well placed people have access to media and also carry a news value. Unfortunately, they are using their talents to deconstruct the democratic process. Katju, for instance, signifies how the state power uses democratic structures to serve the interests of the ruling party.

PCI is privileged with a historic role when the media is in danger of loosing its autonomy because of the burden of big capital. Therefore, people like Katju have the opportunity to contest and negotiate with the forces of socio-economic change trying to use media as a neo-liberal tool. As a former judge of the Supreme Court, he carried with him a clout which could benefit the PCI’s visibly new larger-than-life role.

Katju loves to remain in headlines by using foul language and inviting bitter controversies. What is more painful, he has identified himself with the immediate interests of the ruling party at the centre. For instance, he systematically targeted three important non-Congress chief ministers, Mamata Banerjee, Nitish Kumar and Narendra Modi. There is nothing wrong in making a critical assessment of an individual, but there are limits placed even on that authority. Katju could not care less.

In addition, he chooses harsh and unpalatable words for attacking political actors holding elected positions. He described Mamata Banerjee as “totally dictatorial, intolerant, and whimsical”. Does an elected chief minister deserves such derogatory and politically-motivated remark by the head of the PCI?

He targeted Nitish for gagging the media. There is no doubt that media in Bihar is playing a pro-Nitish role. But let him first answer whether it is due to the fear of repression or media’s own new ethics? This is a million dollar question before the PCI and Katju has taken a one-sided view. He is trying to turn a half-truth into full-truth.

The debate on the content of electronic media is healthy. But Katju has used the content debate to question a fundamental right, ie freedom of the press. The content debate can not be simplified merely as a TRP race. It is an outcome of new values imposed by neo-liberalism. However Katju has failed to comprehend the challenges emerging from the changing character of media and has gone up to the extent of suggesting curbs on the freedom of the press.

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Source : IIPM Editorial, 2013.
An Initiative of IIPM, Malay Chaudhuri

and Arindam Chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles

IIPM’s Management Consulting Arm-Planman Consulting
Professor Arindam Chaudhuri – A Man For The Society….
IIPM: Indian Institute of Planning and Management
IIPM makes business education truly global
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman

ExecutiveMBA

'Training programmes will continue even in worst case scenario'

Mayank Singh speaks to Vishal Chandra, an Afghanistan specialist, to discuss the nuts and bolts of the New Delhi-Kabul engagement once the American troops draw down.

1. How are the developments taking place in Afghanistan going to effect India?
In my view, sustaining the momentum of its engagement with Afghanistan would be a key challenge for India after 2014. India has emerged as a major ‘development partner’ of the Afghan people since the overthrow of the Taliban regime in November-December 2001.  India has been extremely innovative in terms of diversifying and improvising its assistance programmes as per the changing ground situation and specific requirements of the Afghan people. Perhaps, therein lay the strength of the Indian approach towards Afghanistan.

India started of with some large reconstruction projects but gradually realised the significance of carrying out local community based small development projects across Afghanistan. Indian assistance and training programmes, including Indian medical missions to the country, have been very well received by the Afghan people. On the basis of my field studies in Afghanistan, I can suggest that the Afghan people look up to the Indian experience on a wide range of issues – right from managing their own social and political diversity through an inclusive political order, to re-building their modern institutional capacities. In fact, India has shown the way forward as far as carrying out reconstruction projects in an in-conflict situation is concerned. There was never really a post-conflict situation in Afghanistan after 2001. If one has to take a long-term view of the Afghan challenge, then there can be no viable option other than helping the Afghan people in rebuilding their institutions and state capacities as per their own cultural and political specificities.

India has clearly been adjusting its policy corresponding to the developing situation in Afghanistan. India’s support for an ‘Afghan-led’ and ‘Afghan-owned’ peace process has to be seen as part of India’s continuing support for the government in Kabul. Similarly, India’s assistance in training the Afghan army officers, as envisaged in the Strategic Partnership Agreement of October 2011, should be seen as part of the wider international effort to help strengthen the position of Kabul.

2. In your opinion how will the exit of ISAF in 2014 change the situation?
As the US and NATO-led force drawdown and the security situation deteriorate, it might be increasingly difficult for India to sustain its current levels of engagement and presence. India is not a major player in terms of political and military leverages inside Afghanistan. India’s future role and position would therefore depend on the outcomes of the ongoing security and the next round of political transition in Afghanistan, both of which are suppose to culminate by 2014.

Following factors could be considered as critical to the Indian role and position after 2014:

•     The survivability and sustenance of the current Afghan political system and constitution, basically the strength of the Afghan institutions to withstand the implications of Western drawdown;
•     Nature and level of Western engagement and commitment in the post-transition period; Salience of Pakistan’s military establishment in the post-2014 Western approach to Afghanistan;
•     The political perception, orientation and composition of the next government in Kabul; and,
•     The strength of India’s ties with various Afghan factions

3. What is your assessment of the Pakistan factor in future Afghan politics?

The situation in Afghanistan is definitely worrisome, but may not be all that pessimistic as is often made out to be.  The Pakistan factor in the Afghan politics and the future Western strategy too has its limitations. Perhaps, Iran too is a huge factor and an influential force inside Afghanistan. It would not be all that easy for Pakistan-backed Haqqani-Taliban network to make an absolute comeback to power inside Afghanistan. Pakistan’s military establishment, or at least sections of it, might not be sure of how favourable the Haqqani-Taliban network would be towards Pakistan’s interests this time in case they make a full comeback to power. It is also unlikely that a Pakistan-brokered or mediated deal between the Afghan Government and the top Taliban leadership would be acceptable to a vast section of Afghan population.

Compared to 1990s, today’s Pakistan is far more unstable and bedevilled with protracted internal crisis, ranging from sectarian violence to militant extremist ideologies spreading across the country. In fact, at times there is more violence inside Pakistan than in Afghanistan. What the West has either consciously ignored or deliberately trivialised is the fact that Pakistan’s military has mastered the art of surviving on the instability of its own country, and imaginary constructs of existential threat to Pakistan from neighbouring countries.

4. In the changed scenario, what is your suggestion for India?
As a neighbouring country, India has to take a long-term view of the challenges emanating from its turbulent north-western neighbourhood. The development leading to and following 2014 is yet another phase in the long-drawn Afghan conflict. However, India has severe geo-political limitations when it comes to doing more or playing greater role in Afghanistan as is often suggested in Western analysis. Lack of clarity in Western policy towards both Afghanistan and more so towards Pakistan, particularly in terms of their over all objectives and commitment in the region, makes the situation all the more complex for India. India’s presence and relatively huge contribution to Afghan reconstruction, though often praised, has at times also invited Western scepticism and even criticism in view of her historically adversarial relations with Pakistan.

Despite all limitations, India for its own reasons cannot afford to disengage from Afghanistan. Apart from direct physical threat, India and Afghanistan face a major ideological threat from a range of Pakistan-sponsored violent extremist groups operating from within its territories. In view of the developing situation, following may be recommended:

•     India must take a long-term view of developments in the Afghanistan-Pakistan region, and should not be bogged down with post-2014 uncertainties;
•     India must engage the next generation of Afghan leadership and should remain a key ‘development partner’ of the Afghan people. India must find innovative ways to invest more in tapping into the Afghan youth. Training Afghan youths and professionals in Indian institutions will keep India connected to diverse sections of the Afghan population even in a worst case scenario.
•     It would be in the long-term interest of India to evenly develop its relations with diverse ethnic groups and factions in Afghanistan.
•     Given the socio-political polarisation and fractious nature of Afghan politics, India should firmly avoid any direct military involvement in Afghanistan. Any pre-emptive or adventurous militaristic approach is bound to prove counter-productive. It would subsequently alienate India within Afghanistan and the wider south-central Asia region.
•     Though regional groupings/mechanisms are not likely to play a direct military role in the stabilisation of Afghanistan, India must continue to try and engage other regional countries which share India’s concerns, both bilaterally and also through multilateral forums.

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Source : IIPM Editorial, 2013.
An Initiative of IIPM, Malay Chaudhuri

and Arindam Chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles

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IIPM Best B School India
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A state of flux

As caste-based regional outfits gather steam and undermine the prospects of the national parties in Karnataka, politics in the southern state is poised to go the Uttar Pradesh way, writes Kumar Buradikatti

Karnataka is gearing up for Assembly elections in April. With the fortunes of the ruling BJP and the Congress hitting the skids in the state, caste-based regional formations are likely to gain in the post-poll scenario.

Karnataka is set to go the Uttar Pradesh way. UP is India’s largest state and is accustomed to electoral fragmentation on caste and community lines. Karnataka, only one third the size of UP, is not. So, if a hung Assembly is what the April elections yield, the development would mark a paradigm shift in Karnataka politics.

Congress, BJP and Janata Dal are the three parties that have traditionally jostled for seats in the Vidhana Soudha. Two new forces have lately jumped into the fray. Former chief minister BS Yeddyurappa’s Karnataka Janata Party (KJP) and Badava Shramika Raitha Congress (BSR Congress), led by B Shriramulu, the right hand man of jailed mining baron Gali Janardhana Reddy, are likely to queer the pitch for the national parties by taking away a chunk of their votes.

While none of the five contenders are in a position to sweep the polls, KJP and BSR Congress could both wrest enough seats to give the principal parties a run for their money. But in the run-up to the elections, none of the political formations is keen to get into any alliances, preferring to wait and watch the for eventual outcome. 

For Congress and Janata Dal (Secular), the April polls could be just another electoral battle. But for BJP and KJP, it would be an acid test. The BJP would be out to demonstrate that it has the strength to live down Yeddyurappa’s exit. For the party leaders who have been instrumental in pushing Yeddy out of the BJP, the likes of KS Eeshwarappa, Ananth Kumar, Sadananda Gowda and Jagadish Shettar, the upcoming election would be an opportunity to prove a point. 

Yeddy too, would be determined to make the BJP, a party he served for four decades, pay for the folly of neglecting a regional mass leader with the backing of the dominant Lingayat  community.

The BJP will also have to contend with the BSR Congress. Yeddy’s mass support and the Reddy’s money power had catapulted BJP to power in Karnataka in 2008. With both now gone, it would be an uphill task for the party to retain power. BJP is unlikely to win more than 50 to 60 seats. In that eventuality, it would be back on the Opposition benches.

In the past, the Congress has had to suffer the consequences of sidelining Veerendra Patil, who was not only a mass leader but also had control over the party’s rank and file. This was something that Yeddy lost no opportunity to remind the BJP’s central leadership of.    

When Indira Congress sacked Chief Minister Veerendra Patil, leader of the politically powerful Lingayat community (to which Yeddy himself belongs), and installed S Bangarappa in his place, the party lost the next election and HD Deve Gowda of Janata Dal became the chief minister.

In 1994, history repeated itself. Congress sacked Bangarappa and named Veerappa Moily chief minister. Bangarappa quit Congress and launched his own party, Karnataka Congress Party. His outfit won only ten seats but managed to ensure a Congress defeat in 30 constituencies. Janata Dal stormed to power in the bargain.  

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Source : IIPM Editorial, 2013.
An Initiative of IIPM, Malay Chaudhuri

and Arindam Chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles

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Patrolling in bullock carts

Indian police patrol cars are in a desperate need of an upgradation

The Delhi gang rape case is doing the rounds in the news channels for the last couple of weeks. It has  created a buzz around the rising crime against women as well as overall rise in crime in India, more so in the capital  – Delhi. The rise in crime in the capital questions not only the efficacy of the police force but also the relevance of the Indian Penal Code and the laws against crime at large.

However, it would be inappropriate to put all the blame on the inefficiency of the police force alone. How can we expect them to act in a swift manner when all they are provided with are old and outdated equipment?  Because of these outdated equipment like faulty bulletproof vests and outdated guns, 16 policemen died in Mumbai terror attacks in 2008.

While there have been upgradation in other equipment, one of the main equipment – the police patrol car – seems to be lagging behind. The police is still using Mahindra Jeeps, Tata Sumo, Bolero, Hyundai and even Tata Nano in the rural areas. The ability of these cars to chase down criminals can be evidently questioned. Although they provide greater fuel efficiency which helps in keeping the cost in check, they fail to fulfil the basic premise of patrol cars in the first place – reaching the crime spot quickly and chasing the criminals, especially on the highways.

Compare these cars with the patrol cars used in developed countries: Germany uses the Brabus CLS Rocket — currently the world's fastest legal sedan with 730hp from a twin-turbo V12 and a top-speed of 225 mph— along with the Porsche 911 Carrera, capable of running over 186 mph and sprinting to 60 mph in just 4.6 seconds.

Austria and Bulgaria use the Porsche 911 while police in UK, Italy, London and South Africa use Lamborghini cars. USA provides Dodge Viper and Hummer H2 for highway patrolling while Canada uses Jaguar S Type cars. All these cars have highly powerful engine and are well equipped with all the latest equipment in terms of GPS navigation, video surveillance and on the go communications on top of running at high speed, all of which are lacking in Indian patrol cars.

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Source : IIPM Editorial, 2013.
An Initiative of IIPM, Malay Chaudhuri

and Arindam Chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles

IIPM’s Management Consulting Arm-Planman Consulting
Professor Arindam Chaudhuri – A Man For The Society….
IIPM: Indian Institute of Planning and Management
IIPM makes business education truly global
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman

ExecutiveMBA

The marriage of a “virtuous mouse” and a “wealthy elephant”

Professors James E. Austin and Herman B. “Dutch” Leonard, of Harvard Business School discuss whether the marriage of a “virtuous mouse” and a “wealthy elephant” work to the benefit of both

Q: How can elephants protect the mouse’s value & brand integrity?

JA/DL: The more effective large companies have recognised that preserving the social icon’s distinctive culture and business approach is essential to preserving its key success factors. Consequently, they retain a large degree of organisational independence so as to prevent “contamination” of the social technology. This stands in contrast to the common approach in acquisitions to integrate and rationalise the assets into the new owner’s systems, structure, and culture. Some of the specific mechanisms used in successful small company-big comapny M&A deals include governance structures and processes that give the “mice” review and even veto power over actions by the “elephants” that might jeopardise those elements that are deemed essential to the social values underlying the brand’s integrity.

Q: What are some obstacles that companies considering these kinds of acquisition strategies need to be mindful of?

JA/DL: Avoid assuming that these acquisitions are the same as others. Failing to understand and appreciate the social value dimension of the mice’s missions or failing to respect their distinctive operating culture can create incompatibility and conflict that will probably cancel the courting or sour the marriage. Don’t look first for cost rationalisations, but concentrate on the top line growth.

Q: So, do such M&A deals create value for shareholders?

JA/DL: The marriages we have studies so far are still in their early stages, so we will need to continue observing how they unfold. Nonetheless, the emerging evidence suggests that both the virtuous mice and the wealthy elephants are well on their way to attaining their respective goals. Scaling is occurring, thereby enabling social entrepreneurs to achieve greater impact. Market penetration and positive financial results are being achieved, thereby meeting the large companies’ aspirations. There have been bumps, but it does appear that the partners are capable of learning and adjusting, and are well on their way to capturing the potential synergies.

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Source : IIPM Editorial, 2013.
An Initiative of IIPM, Malay Chaudhuri

and Arindam Chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles

2012 : DNA National B-School Survey 2012
Ranked 1st in International Exposure (ahead of all the IIMs)
Ranked 6th Overall
Zee Business Best B-School Survey 2012
Prof. Arindam Chaudhuri’s Session at IMA Indore
IIPM IN FINANCIAL TIMES, UK. FEATURE OF THE WEEK
IIPM strong hold on Placement : 10000 Students Placed in last 5 year

BBA Management Education

The high risks of short-term management

Profs. Francois Brochet and George Serafeim of Harvard Business School, in a HBS Working Knowledge interview with Sean Silverthorne, Editor-in-Chief, HBSWK, talk about their new research findings that prove how management based on short-term goals have negative implications for both investors and company executives alike

Companies that manage for short-term gain rather than long-term growth have been blamed for everything from popularising celebrity CEOs to causing a significant chunk of the current financial crisis. New research findings suggest that short-termism might have negative effects on these companies themselves and their investors. There’s another surprise in the research: short-termism might not be as widespread as we think, and a substantial number of corporations are rising to the challenge. “One important takeaway is that firms with long-term horizons exist,” says George Serafeim, Asst. Professor at Harvard Business School, coauthor of the working paper ‘Short-termism, Investor Clientele, and Firm Risk’, with HBS doctoral candidate Maria Loumioti and Assistant Professor Francois Brochet. “Many companies are being managed for the long term,” says Serafeim.

The research team was interested in several issues: Do short-term companies attract a particular kind of investor? Is investing in these firms riskier than investing in companies with longer-term time horizons?

Their first order of business was to determine a method for categorising companies on the short-term/long-term continuum. The answer came in the very words used by executives to discuss their companies. Brochet, Serafeim, and Loumioti studied transcripts of 70,042 earnings calls where executives discuss quarterly results with investors, analysts, and the media that were held by 3,613 firms during 2002-2008. This involved searching for 14 terms used by management such as “latter half” and “weeks” that would tip off a short-term view, versus 15 words or phrases such as “long term” and “years” that would suggest a longer time horizon approach.

The researchers then compared their list of companies on both ends of the spectrum with the companies’ actual financial and stock performance, studying indicators such as return volatility, the length of time investors held a firm’s stock, and the cost of capital. The results showed that short-term companies attracted short-term investors (bringing with them a whole new set of performance pressures on executives) and that the financial and strategic performance of these companies was more volatile – and riskier – than that of the long-termers. The team also identified industries that appear to be short-term-oriented (banking, electronic equipment, business services, and wholesale) and long-term-focused (beverages, retail, pharma, and medical goods). Companies, too, were categorised by outlook. Short-termers included Cisco, Goldman Sachs, and Chevron, while the longer horizon outfits included Coca-Cola, Ford, and Nordstrom.

Question: In general, what relationship did you find between companies you identified as short-term-oriented, their investors, and the behaviour of their stocks? 

Francois Brochet (FB): Overall, we found a positive association between the horizon over which firms communicate and the investment horizon of their shareholders. In addition, short-term-oriented firms appear to have more volatile stock returns and higher estimated cost of equity capital – that is, greater risk. While the presence of long-term-oriented investors appears to mitigate the positive association between firms’ short horizon and the volatility of their stock, this does not apply to the association between short-termism and cost of capital. We interpret this as evidence that our short-termism measure captures a dimension of non-diversifiable risk in the economy.

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Source : IIPM Editorial, 2013.
An Initiative of IIPM, Malay Chaudhuri

and Arindam Chaudhuri (Renowned Management Guru and Economist).

 

For More IIPM Info, Visit below mentioned IIPM articles

IIPM Global Exposure
IIPM Best B School India
IIPM B-School Detail
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IIPM : The B-School with a Human Face

BBA Institute

Penn State pedophilia scandal: Lessons for CEOs

CEOs may argue that cover-ups protect their companies’ interests. An HBS Working Knowledge column on why these arguments may be totally invalid

The most damaging portion of former FBI Director Louis Freeh’s report on the Pennsylvania State pedophilia scandal is his conclusion that four senior university officials concealed football coach Jerry Sandusky’s child abuse from 1998 to 2011, even from its board of trustees, because they wanted “to avoid the consequences of bad publicity”.

In so doing, these officials – including legendary head football coach Joe Paterno and President Graham Spanier – placed their own reputations ahead of the harm that Sandusky did to young boys for the next 14 years.

Ironically, had Penn State turned Sandusky over to legal authorities in 1998, the public would have viewed its actions as protecting the victims, thereby enhancing the University’s reputation. Instead, these men caused grave damage to a great university while allowing Sandusky free reign to destroy lives. Sadly, the Penn State situation is not unique. Consider these other cases:

Had President Richard Nixon acknowledged his role in the Watergate scandals, he could have saved his presidency and his legacy. Had the hierarchy of the Roman Catholic Church acknowledged its pedophilia scandals, it would have protected victims and its moral authority. Had President Bill Clinton admitted his relationship with Monica Lewinsky, the scandal would have subsided, enabling him to focus on his pro-growth policies to balance the budget and create jobs. Had Martha Stewart and Rajat Gupta admitted their roles in insider trading, they could have plea bargained, moved past their ethical lapses, and possibly avoided prison time. Had Best Buy founder Richard Schulze not covered up CEO Brian Dunn’s improprieties, he could have retained Best Buy’s reputation for sound values (and his own).

Contrast these actions with JPMorgan CEO Jamie Dimon, who took immediate responsibility for his firm’s recent trading losses, calling them “stupid and egregious”. While Dimon took considerable heat, his reputation as a “truth teller” remains intact. Eventually, JPMorgan will be restored and corrective actions put in place to mitigate future risks.

The deeper question raised by these examples is – what causes leaders to cover up inappropriate actions instead of acknowledging them immediately?

Many leaders strive for such perfection that they are unwilling to admit mistakes. They feel tremendous external pressure to be perfect, but in reality they are far more successful when they are authentic. Were they to think rationally about what to do, they would see it is better to acknowledge the truth, no matter how painful, because the truth will surface eventually. More importantly, they can prevent further harm to the victims. While leaders may rationalise that a cover-up protects the interests of their organisations, the damage of one typically harms their institutions far more than the direct admission of a mistake.

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Source : IIPM Editorial, 2013.
An Initiative of IIPM, Malay Chaudhuri

and Arindam Chaudhuri (Renowned Management Guru and Economist).

 

For More IIPM Info, Visit below mentioned IIPM articles

 

2012 : DNA National B-School Survey 2012
Ranked 1st in International Exposure (ahead of all the IIMs)
Ranked 6th Overall
Zee Business Best B-School Survey 2012
Prof. Arindam Chaudhuri’s Session at IMA Indore
IIPM IN FINANCIAL TIMES, UK. FEATURE OF THE WEEK
IIPM strong hold on Placement : 10000 Students Placed in last 5 year
IIPM’s Management Consulting Arm-Planman Consulting
Professor Arindam Chaudhuri – A Man For The Society….
IIPM: Indian Institute of Planning and Management
IIPM makes business education truly global
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman
IIPM B-School Facebook Page
IIPM Global Exposure
IIPM Best B School India
IIPM B-School Detail
IIPM Links
IIPM : The B-School with a Human Face